VIEIX vs. FESM

Last updated Jun 4, 2026

VIEIX (Vanguard Extended Market Index Fund Institutional Shares) and FESM (Fidelity Enhanced Small Cap ETF) are both funds - VIEIX is a Mid Cap Blend Equities fund managed by Vanguard, while FESM is a Small Cap Blend Equities fund actively managed by Fidelity. Over the past year, VIEIX returned 30.15% vs 46.73% for FESM. With a 0.96 correlation, they move nearly in lockstep. VIEIX charges 0.05%/yr vs 0.28%/yr for FESM.

Performance

VIEIX vs. FESM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Extended Market Index Fund Institutional Shares (VIEIX) and Fidelity Enhanced Small Cap ETF (FESM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VIEIX achieves a 14.93% return, which is significantly lower than FESM's 19.64% return.

VIEIX

• 1D: 1.07%
• 1M: 5.81%
• YTD: 14.93%
• 6M: 13.66%
• 1Y: 30.15%
• 3Y*: 20.15%
• 5Y*: 6.92%
• 10Y*: 12.20%

FESM

• 1D: -1.51%
• 1M: 3.13%
• YTD: 19.64%
• 6M: 19.11%
• 1Y: 46.73%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VIEIX vs. FESM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VIEIX Vanguard Extended Market Index Fund Institutional Shares	14.93%	11.42%	15.49%	13.59%
FESM Fidelity Enhanced Small Cap ETF	19.64%	17.88%	16.22%	12.19%

Correlation

The correlation between VIEIX and FESM is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (All Time) Calculated using the full available price history since Nov 21, 2023	0.96

The correlation between VIEIX and FESM has been stable across timeframes, ranging from 0.95 to 0.96 - a consistent structural relationship.

VIEIX vs. FESM - Sectors Allocation Comparison

Sectors	VIEIX	FESM
Technology	19.8%	21.6%
Industrials	19.3%	19.1%
Financial Services	14.6%	14.8%
Healthcare	13.3%	15.7%
Consumer Cyclical	9.7%	7.4%
Real Estate	6.0%	4.2%
Energy	5.1%	7.2%
Basic Materials	4.2%	3.5%
Communication Services	3.3%	3.1%
Consumer Defensive	2.7%	1.4%
Utilities	2.0%	2.0%

Return for Risk

VIEIX vs. FESM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VIEIX

VIEIX Risk / Return Rank: 47
VIEIX Sharpe Ratio Rank: 41
VIEIX Sortino Ratio Rank: 39
VIEIX Omega Ratio Rank: 36
VIEIX Calmar Ratio Rank: 66
VIEIX Martin Ratio Rank: 55

FESM

FESM Risk / Return Rank: 76
FESM Sharpe Ratio Rank: 75
FESM Sortino Ratio Rank: 72
FESM Omega Ratio Rank: 66
FESM Calmar Ratio Rank: 84
FESM Martin Ratio Rank: 82

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VIEIX vs. FESM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Extended Market Index Fund Institutional Shares (VIEIX) and Fidelity Enhanced Small Cap ETF (FESM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	VIEIX	FESM	Difference
Sharpe ratio: Return per unit of total volatility	1.87	2.48	-0.61
Sortino ratio: Return per unit of downside risk	2.61	3.34	-0.74
Omega ratio: Gain probability vs. loss probability	1.32	1.41	-0.09
Calmar ratio: Return relative to maximum drawdown	3.13	4.61	-1.48
Martin ratio: Return relative to average drawdown	11.08	16.60	-5.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VIEIX vs. FESM - Sharpe Ratio Comparison

The current VIEIX Sharpe Ratio is 1.87, which is comparable to the FESM Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of VIEIX and FESM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VIEIX	FESM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.87	2.48	-0.61
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.31	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	1.29	-0.89

Drawdowns

VIEIX vs. FESM - Drawdown Comparison

The maximum VIEIX drawdown since its inception was -58.03%, which is greater than FESM's maximum drawdown of -26.93%. Use the drawdown chart below to compare losses from any high point for VIEIX and FESM.

Drawdown Indicators

	VIEIX	FESM	Difference
Max Drawdown Largest peak-to-trough decline	-58.03%	-26.93%	-31.10%
Max Drawdown (1Y) Largest decline over 1 year	-10.25%	-10.18%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-26.84%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-36.32%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-41.62%	—	—
Current Drawdown Current decline from peak	0.00%	-1.59%	+1.59%
Average Drawdown Average peak-to-trough decline	-13.84%	-4.79%	-9.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.89%	2.82%	+0.07%

Volatility

VIEIX vs. FESM - Volatility Comparison

The current volatility for Vanguard Extended Market Index Fund Institutional Shares (VIEIX) is 4.69%, while Fidelity Enhanced Small Cap ETF (FESM) has a volatility of 5.64%. This indicates that VIEIX experiences smaller price fluctuations and is considered to be less risky than FESM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VIEIX	FESM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.69%	5.64%	-0.95%
Volatility (6M) Calculated over the trailing 6-month period	12.46%	13.32%	-0.86%
Volatility (1Y) Calculated over the trailing 1-year period	17.17%	18.98%	-1.81%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.34%	21.26%	+1.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.36%	21.26%	+1.10%

VIEIX vs. FESM - Expense Ratio Comparison

VIEIX has a 0.05% expense ratio, which is lower than FESM's 0.28% expense ratio.

Dividends

VIEIX vs. FESM - Dividend Comparison

VIEIX's dividend yield for the trailing twelve months is around 1.01%, more than FESM's 0.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FESM Fidelity Enhanced Small Cap ETF	0.53%	0.82%	1.08%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VIEIX Vanguard Extended Market Index Fund Institutional Shares	1.01%	1.14%	1.10%	1.26%	1.16%	1.14%	1.08%	1.31%	1.67%	1.27%	1.45%	1.37%

Frequently Asked Questions

Can I hold both VIEIX and FESM in my portfolio?

With a correlation of 0.95, VIEIX and FESM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VIEIX or FESM?

FESM has higher volatility (5.64%) compared to VIEIX (4.69%). In terms of maximum drawdown, VIEIX dropped -58.03% vs FESM's -26.93%.

Which has better risk-adjusted returns?

FESM currently has the higher Sharpe Ratio (2.48 vs 1.87), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.